Daiichi Sankyo writes off $950 million after abandoning ADC manufacturing plan
Daiichi Sankyo announced it will abandon its planned antibody-drug conjugate (ADC) manufacturing facility. The company said the decision follows a serious over-estimate of third-party demand for ADC capacity.
The change caused an "extraordinary loss" of 149.4 billion Japanese yen, roughly $950 million, recorded in its latest financial results.
Management attributed the shortfall to overly optimistic market forecasts and will now focus on existing operations rather than expanding ADC production.
The loss highlights the risks of rapid expansion in the competitive ADC space and may prompt investors to reassess the company’s growth strategy.
This writeup was produced by pharmadog from original reporting by Endpoints.
Original headline: “Daiichi Sankyo posts 'extraordinary loss' of nearly $1B”
read at Endpoints ↗
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